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What is Electronic Conveyancing (E-Conveyancing)? Electronic Conveyancing (E-conveyancing) allows for an “electronic” settlement of a conveyancing transaction through an online exchange known as PEXA. The system will operate across Australia and is supported by legislation in Queensland. The system does not cover all aspects of the conveyancing process but does allow for the preparation and […]
Electronic Conveyancing (E-conveyancing) allows for an “electronic” settlement of a conveyancing transaction through an online exchange known as PEXA. The system will operate across Australia and is supported by legislation in Queensland.
The system does not cover all aspects of the conveyancing process but does allow for the preparation and signing of documents and their lodgement in the Land Titles Office as well as the completion of financial transactions involved in a conveyance (such as settlement money transfer and transfer duty payment) to occur electronically. Traditionally, each of these steps is handled by a paper process where printed documents would be signed by parties, and documents and cheques for settlement funds are physically exchanged at settlement.
The main advantage of an electronic settlement process is efficiency. Not only does the process make it unnecessary to attend a physical settlement for the exchange of documents and funds, when the exchange occurs, cleared funds are credited to the recipient’s account within a very short time. This has particular benefits for a Seller who will not be required to wait for cheque clearing procedures following a settlement.
The electronic settlement process cannot be used for all conveyancing transactions and can also only be used if all parties agree to it. The process is only available to financial institutions, and parties who engage a legal practitioner.
In our First Letter, we will tell you whether the Contract makes provision for Electronic Conveyancing (e-conveyancing) to be used for settlement. Even if it does, the use of e-conveyancing for settlement will likely depend on the agreement of all parties (including financiers) to do so.
We require your authority to use e-conveyancing for the settlement of the transaction. That authority must be provided in the form of a Client Authorisation. A separate authorisation form must be signed by each Buyer. If Electronic Conveyancing (e-conveyancing) is to be used, we will contact you closer to settlement to discuss arrangements for the signing of a Client Authorisation.
Request EvaluationAs a Client Authorisation allows us to undertake the settlement of the transaction on your behalf (and to sign documents for you), we are required to undertake a prescribed process to verify your identity. This will require you to attend our office for a face-to-face meeting where you will need to produce identity documents and sign the Client Authorisation. If a face-to-face meeting is not possible, an agent can undertake the verification of the identity process.
Although the system may have advantages for the parties in relation to the efficiency of arranging settlement and the transfer of funds, a party contemplating the use of e-conveyancing should be aware of the following risks:
If you have any questions about how e-conveyancing works or whether it may be used for your transaction, Please contact us to discuss them.
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